No, not President Truman’s foreign aid plan; these four points are what IRS needs to certify that a seriously delinquent tax debt exists, sufficient to cause a passport yank per Section 7345. Judge Elizabeth A. (“Tex”) Copeland enumerates them all in Eric P. Mattson, T. C.Memo. 2022-118, filed 12/6/22, at p. 6.

The taxes, add-ons, chops and interest constituting the debt 1) has been assessed; (2) exceeds $50,000 (adjusted for inflation; year-at-issue number was $51K); (3) is unpaid and legally enforceable; and (4) is the subject of a filed lien notice or a completed levy. I.R.C. § 7345(b)(1), (f).

Eric claims the SOL has run on enough of his six (count ’em, six) unreported, unpaid years to knock him down from $61K to $31K. Except he had a CDP, which he timely petitioned, and from the sustentation of the NOD denying the petition which he further appealed to 9 Cir, all stayed the SOL, so the whole boat was current at date of certification of the debt.

Eric claims there was no Boss Hossery for the Section 6673(a)(1) chop he got when he frivoled on his CDP, but as Tax Court imposed it and not IRS, there needn’t be. And it was only $2K, so it wouldn’t help.

Judge Tex Copeland notes that while the NFTL in this case expired after 10 years by its own terms, expiry only impacts third parties, whose rights as against Eric are no longer impaired by the Section 6321 lien. IRS’ lien as against Eric continues until the SOL runs out. And Section 7345 doesn’t require that a current NFTL be filed at certification date, only that an NFTL was filed and the lien be then enforceable by IRS as against Eric. One filing fits all.

Interesting review of Section 7345 learning here; worth keeping in your toolbox.